Domo Inc (NASDAQ:DOMO) Q4 2019 Earnings Conference Call - Final Transcript

Mar 13, 2019 • 05:00 pm ET

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Domo Inc (NASDAQ:DOMO) Q4 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good day, ladies and gentlemen, and welcome to Domo Q4 Fiscal Year 2019 Earnings Call. At this time, all participants are in a listen-only mode. (Operator Instructions) As a reminder, this conference may be recorded.

I would now like to introduce your host for today's call, Ms. Julie Kehoe, Vice President of Communications and Public Relations. Ms. Kehoe, you may now begin.

Executive
Julie Kehoe

Thank you very much. Welcome everyone. On the call today, we have Josh James, our Founder and CEO; and Bruce Felt, our CFO. Our press release was issued after the market close and is posted on our IR website at www.domo.com/ir, where this call is simultaneously being webcast.

Statements made on this call may include forward-looking statements regarding our financial results, applications, customer demand, operations and other matters. These statements are subject to risks, uncertainties and assumptions. Please refer to the press release and the risk factors and other documents we filed with the Securities and Exchange Commission, including our registration statement on Form S-1 that was filed with the SEC, and the Form 10-K that will be filed for information on risks, uncertainties and assumptions that may cause actual results to differ materially from those set forth in such statements.

In addition, during today's call, we will discuss non-GAAP financial measures, which we believe are useful as supplemental measures of Domo's performance. Unless otherwise stated, we will be discussing results of operations data, other than revenue, on a non-GAAP basis. These non-GAAP measures, including our guidance for the first quarter and full year 2020 exclude stock-based compensation, amortization of intangible assets, and reversal of a contingent liability. These non-GAAP measures should be considered in addition to and not as a substitute for or in isolation from GAAP results. You can find additional disclosures regarding these non-GAAP measures, including reconciliations with comparable GAAP results in our earnings press release and on the Investor Relations page of our website, where a webcast replay of this call will also be available until midnight Eastern Time on March 27, 2019.

With that, let me hand it over to Josh. Josh?

Executive
Joshua G. James

Thank you, Julie. Hello, everyone. It's good to be back with you again for our Q4 and fiscal 2019 earnings call, our third quarter as a public company.

For today's call, I want to focus on three things, which I believe are all strong indicators that the outsized opportunity in front of us is still very much intact. First, strong business execution, including continued progress towards our cash flow breakeven target. Second, the growing adoption of the platform and apps across our customers. And third, growing market validation.

Now my first point, strong execution, since before IPO, we've been focused on rightsizing our sales and marketing spend as we shifted to a more enterprise-focused model. While we're rightsizing our sales and marketing spend, we decreased North American sales rep headcount to reset the team with the right talent and we waited for increased rep productivity before starting to hire sales reps again.